Friday, April 06, 2007
Second Circuit Won’t Rehear IPO Securities Litigation
The Second Circuit ruled today that it won’t rehear the plaintiffs appeal in the IPO securities litigation, but said they can try again for class certification at the lower court. In December, Wall Street won a big victory when the appeals court said a lawsuit alleging fraud in the pricing of IPOs couldn’t move forward as a class action. The case alleged that more than 50 Wall Street firms committed fraud by artificially inflating stock prices in IPOs that the firms underwrote during the tech bubble.